KUALA LUMPUR: The High Court was today told that Datuk Seri Dr Ahmad Zahid Hamidi was willing to settle the overdue loan payment of USD$2.058 million for a company using Yayasan Akalbudi funds, in his daughter's bid to take over some of the company's shares.
This was revealed by Datuk Mat Noor Nawi, 65, who is the former chairman of Export-Import Bank of Malaysia Bhd (Exim Bank).
The 76th prosecution witness said the company, Ri-Yaz Asset Sdn Bhd had taken out a loan of USD$24.8 million with the bank for the purchase of a hotel in Bali, Indonesia in 2016.
He said he received a call from the former deputy prime minister's daughter Datuk Nurulhidayah Ahmad Zahid on May 19, the same year, relaying her interest to take over 60 per cent of the company's shares from Tan Sri Rashid Manaf who is Ri-Yaz Asset's former chairman.
"In the phone call, Nurulhidayah told me that her father wanted to speak to me. She passed the phone to Ahmad Zahid and he told me that Nurulhidayah was interested to take over the shares in Ri-Yaz Asset from Rashid," he said.
He went on to say that a meeting later took place between him, Nurulhidayah, Ahmad Zahid, Exim Bank former chief executive officer Norzilah Mohamed and Ri-Yaz Asset director Datuk Seri Shaheen Shah Mohd Sidek at the Deputy Prime Minister's office in Putrajaya on June 23, 2016.
During examination in chief by deputy public prosecutor Ahmad Sazilee Abdul Khairi, Mat Noor said the purpose of the meeting was to seek the banks' approval to allow Nurulhidayah to take over the shares from Rashid.
The witness said, the bank however imposed a pre-condition if Nurulhidayah wished to take over the shares which is for the company to first, settle its overdue loan payment totalling USD$2.058 million with the bank.
"In principle, we agreed to Nurulhidayah taking over the shares, provided that Ri-Yaz's overdue loan payment of USD$2.058 was settled first.
"Zahid said that he was willing to pay for the overdue loan amount using the charity foundation's money as an advance. But he did not mention the name of the foundation," he said.
He added that Ahmad Zahid told him if the foundation's money was used as advance, Nurulhidayah and Shaheen would have to pay the foundation back.
Mat Noor said on Dec 14, 2016, an Exim Bank's board credit committee meeting agreed to transfer Rashid's shares to Nurulhidayah, provided that Rashid remained as the guarantor of Ri-Yaz Asset's loan and has to at least hold 10 per cent of shares in the company.
However, the witness said Nurulhidayah did not proceed with her intention to buy the 60 percent of shares from Rashid.
He said in April 2017, Ri-Yaz Asset sent a letter to the bank to inform that it wanted to settle the USD$23.028 million loan with Exim Bank in its entirety.
Cross-examined by Ahmad Zahid's lawyer Mohd Haziq Dhiyauddin Razali, Mat Noor agreed that the overdue payment was settled after the meeting with Ahmad Zahid in lump sum.
The witness also agreed that Ri-Yaz Asset was having trouble paying back the overdue amount at that time.
Meanwhile, Mat Noor also agreed with the contention of Ahmad Zahid's other counsel Datuk Ahmad Zaidi Zainal that the amount for the overdue payment had been returned and Nurulhidayah did not proceed with her intention of buying the shares.
The witness also testified that the overdue payment was made by Ri-Yaz Asset, but did not know the source of money used by the company to make the payment.
The trial before judge Collin Lawrence Sequerah continues on July 27.
Zahid, 67, is facing 47 charges, 12 of which were for criminal breach of trust (CBT), eight for corruption and 27 for money-laundering involving millions of ringgit belonging to Yayasan Akalbudi belonging to Zahid.